New iPod Shuffle Contains $22 Worth of Parts - MacRumorsOpen MenuShow RoundupsShow Forums menuVisit ForumsOpen Sidebar
Skip to Content

New iPod Shuffle Contains $22 Worth of Parts

BusinessWeek reports on a teardown of the new iPod shuffle by research firm iSuppli, revealing that Apple's diminutive player contains approximately $22 worth of parts.

All told, the cost of the shuffle's components, the headphones, and the packaging it ships in comes to $21.77, according to iSuppli's estimates. That's about 28% of the device's retail price. The smaller the component cost as a percentage of price, the higher the potential profit. This suggests the per-unit profit margin on the shuffle is higher than on other iPod models. The component cost for the first iPod touch released in 2007, for instance, amounted to about $147, or about 49% of its $299 retail price. The component cost of the third-generation iPod nano, also released in 2007, amounted to about 40% of its retail price.

According to iSuppli's analysis, over half the cost comes from two Samsung components, the main controller chip and the 4GB of flash memory at approximately $6 each. The battery, capacitors, and resistors in the new iPod shuffle were also discovered to be remarkably small by industry standards.

The device contains a tiny lithium ion battery that costs $1.20, and that Rassweiler describes as "the smallest we've ever seen." And for a company that doesn't ignore the tiniest of details, the most mundane of components are the most advanced available. The device's so-called passive components - capacitors and resistors - are unusually small. Known by their numeric label 01005, which in electronics shorthand describes their dimensions in millionths of a meter, they're about the size of a grain of salt and cost fractions of a penny each. But they're half the size of what had previously been considered the smallest device of their type, those labeled 0201.

iSuppli's calculations consider only the actual parts of the device and do not include research and development, manufacturing, distribution, and patent royalty costs.

Related Forum: iPod touch and iPod

Popular Stories

iOS 27 on iPhone 17 1

iOS 27 Will Add These New Features to Your iPhone

Saturday May 2, 2026 8:43 am PDT by
Apple is expected to unveil iOS 27 during its WWDC 2026 keynote on June 8, and there are already many rumored features and changes for iPhones. The first developer beta of iOS 27 will likely be available immediately following the keynote, and a public beta typically follows in July. Following beta testing, the software update should be released to all users with a compatible iPhone in...
Apple Event Logo

Apple Just Released a New Accessory

Monday May 4, 2026 8:13 am PDT by
Apple today released a new Pride Edition Sport Loop for the Apple Watch. The band features a rainbow design with 11 colors of woven nylon yarns. The new Pride Edition Sport Loop is available to order now on Apple.com and in the Apple Store app in 40mm, 42mm, and 46mm sizes, and it will be available at Apple Store locations starting later this week. In the U.S., the band costs $49. There...
Apple Announces 2026 Pride Band Watch Face and iPhone Wallpaper Article 2

iOS 26.5 Coming Soon With These New Features

Monday May 4, 2026 8:40 am PDT by
iOS 26.5 is expected to be released next week, following more than a month of beta testing. The update is relatively minor, but there are a couple of new features and changes across the operating system that we have recapped below. iOS 26.5 lays the groundwork for end-to-end encryption for RCS in the Messages app and ads in the Apple Maps app, and it will include a new Pride wallpaper and a...

Top Rated Comments

223 months ago
Why is everyone so defensive? The article isn't critical of Apple or the Shuffle, they state that the Shuffle margin is actually likely less than other iPods.

iSuppli always does these breakdowns for major electronics devices. It goes without saying they are strictly estimating cost of goods sold, which excludes fixed costs such as development, marketing, etc.

People are just trying to head off the usual trolls who whine about how greedy Apple is, how Apple is a monopoly, and how all this technology should be free or that the price should be determined by what they are willing to pay, which is nothing.
Score: 1 Votes (Like | Disagree)
Related Apple News: Entertainment | Lifestyle | Reviews | News | Mac